Japan and India renew $75 bn bilateral swap pact to boost financial safety

Japan and India have renewed their Bilateral Swap Arrangement, keeping the facility size at $75 billion, to strengthen financial safety nets and deepen economic cooperation

Japan and India have renewed their Bilateral Swap Arrangement (BSA) with effect from 28 February 2026, maintaining the size of the facility at up to $75 billion, the Reserve Bank of India said in a release on Monday.

 

The Bank of Japan, acting as agent for Japan’s Ministry of Finance, and the Reserve Bank of India signed the third amendment and restatement agreement of the BSA.

 

The arrangement is a two-way currency swap framework under which both authorities can exchange their local currencies for the US dollar. The facility size remains unchanged at up to $75 billion.

 

The two sides said the BSA is aimed at strengthening and complementing existing financial safety nets. They expressed confidence that the renewed pact would further deepen financial cooperation between Japan and India and contribute to regional as well as global financial stability.